Finance Costs - allowable expense?

Hello I sought advise regarding claiming the finance costs of remortgaging my own unencumbered home as an expense against a property which in in need of refurbished https://community.hmrc.gov.uk/customerforums/ifp/6301cfd7-0096-ef11-95f6-000d3a8737b3 If the property becomes a rental (and therefore income from property) the finance costs would be subject to interest relief at 20% However, if I decide to sell the property this would amount to trading and fall under self employment. I understand the finance cost (mortgage interest from my own home being refinanced to raise funds) would be fully deductible as a business expense when trading (flipping) property. Is that correct?

Hi,
We are unable to provide financial advice.  
If you have rental income from property, you can claim tax relief on mortgage interest relief for residential property finance costs in box 44 of SA105. You can see infor,ation here:
Self Assessment: UK property (SA105)
Thank you.

Hello I am not seeking financial advice. I am seeking advise regarding if the finance cost is an allowable expense on the SA103 supplementary page. I understand mortgage interest relief is available for rental income. I am seeking advice if it is also an allowable expense when trading property as part a self employment business. Are you able to advise please? Thank you

Hi, I'm not an Admin but selling one property doesn't mean you have a trade. This is why proceeds from selling property is liable to CGT rather than income tax. A property developer buys and sells properties as a trade but most people buy and sell property as an investment (either to live in or to rent out) and not as a trade.

Hi Danielle Lane,
Please have a look at the guidanc at BIM45690 - Specific deductions - interest: Funding the business, as the interest may be an allowable expense.
Thank you.